It will be the brand's first locally assembled EV.
The Hyundai Motor Group will produce one of its Genesis models at its plant in Alabama. More specifically, the EV version of the all-new GV70, which made quite a positive impression when we drove it earlier this year.
Citing insider sources, Korean Car Blog states that Hyundai recently had an employee meeting at the Asan plant in Korea. At the meeting, it was revealed that Hyundai would build some future EV models in the USA, starting with the GV70 EV next year.
Even though China is currently the world's biggest market for new cars, the Chinese people are fiercely brand loyal. Mercedes-Benz recently went as far as making China its second home to gain sales there.
The US EV market will boom in the coming years. President Biden wants 50% of all car sales to be EV by 2030. Part of that policy is subsidies for manufacturers who build EVs in the USA. Hyundai certainly wants to capitalize on any government offering these kinds of deals.
As for EV sales, market share is increasing. Last year, 360,000 electric cars were sold, which is just 2.5% market share. This year, the market share increased to 10.4% in the third quarter.
If President Biden's plan works, EV sales will grow to 7.2 million units in 2030 and 12.5 units in 2040.
According to the report, Hyundai chose the Genesis GV70 due to recent sales reports. As a midsize SUV, it competes in a hotly contested market. Since its local introduction earlier this year, sales have been increasing.
It would make sense to electrify a competitive midsize SUV wearing a prestigious badge. Hyundai is killing two birds with one stone, offering a luxury EV in a segment where people spend money while elevating the Genesis brand.
Earlier in the year, the Hyundai Motor Group announced a multi-billion dollar investment in the US.
"I am excited to make this announcement on behalf of the Hyundai Motor Group. This investment demonstrates our deep commitment to the US market, our dealers, and customers," said Hyundai Motor Company's Global Chief Operating Officer and President, Jose Munoz. "Hyundai will lead the future of mobility in the United States and around the world. Our efforts are proof positive that Hyundai will continue to pursue excellence in our current and future product line-up."